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SPCG Successful for Olesnica City on Appeal of Lower Court Judgment

SPCG Successful for Olesnica City on Appeal of Lower Court Judgment

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SPCG has won a dispute for Olesnica City in the Court of Appeal in Wroclaw against Krzysztof Gołab – an administrative receiver of TIWWAL sp. z o.o. w upadlosci likwidacyjnej (in liquidation bankruptcy) – involving contractual penalties imposed on Olesnica City for the alleged non-submission of the design documentation.

In specific, the contractual penalties were imposed "by one of the contractors for the alleged non-submission of the replacement design documentation, in connection with the change of the ice rink refrigeration technology and the use of the melter installation supplied with heat recovered from the refrigerating unit. The contractual penalties were allegedly stipulated in the construction works contract, which covered the construction of the sports and recreation complex in Olesnica – an ice rink with a tennis court function, social, and fitness facilities as well as the reconstruction and extension of the swimming pool along with the land development."

At the trial court stage, on March 24, 2017, the Regional Court in Wroclaw, I Civil Division, ordered Olesnica City to pay Golab PLN 23,602,868.03 plus interest as contractual penalty for non-submission of the design documentation.

SPCG joined the case at the appeal stage and represented Olesnica City before the Court of Appeal in Wroclaw. Following its objections, the Court of Appeal in Wroclaw, I Civil Division, in a judgment of August 23, 2017, reversed the judgment of the Regional Court in Wroclaw and dismissed the claim in full. According to SPCG, the Court of Appeal in Wroclaw "fully agreed with the objections in the appeal, which proved that the contractual penalties were not effectively stipulated for the non-submission or the late submission of the replacement design documentation. The court of second instance ... fully agreed with the arguments included in the appeal that the contractual penalties were stipulated in the construction works contract only for the event of non-submission or late submission of design documentation directly mentioned in the said contract."

The SPCG team advising Olesnica City consisted of Associates Piotr Rodziewicz and Kamil Raksa and SPCG Junior Associate Aleksandra Tabor.

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